Angling Direct PLC – ANG – Interim Results

Angling Direct PLC – ANG – Interim Results

Angling Direct PLC (AIM: ANG), the largest specialist fishing tackle and equipment retailer in the UK, is pleased to announce its unaudited financial results for the six months ended 31 July 2020. These results demonstrate the operational resilience and growth potential of the business, as well as its ability to generate cash despite the Covid-19 pandemic and temporary closure of its store network.

 

The Group continues to adapt in response to the ever-changing nature of the challenges presented by the pandemic and its impact on customers, suppliers and colleagues. The Board is now of the view that there is sufficient visibility to reinstate guidance for the current year outturn and confirms that the Group is trading in line with market expectations for the year ending 31 January 2021 (‘FY21’). With the Group’s growing multi-channel offering and the strength of the balance sheet, the Board remains optimistic about the growth prospects and overall success of the business.

 

Financial highlights:

·      Revenue of £32.1m (H1 20: £26.5m) – up 21%

·      Sales across all channels from 15 June 2020 (the date our stores re-opened) to 31 July 2020 – up 95%

·      Gross profit of £10.8m (H1 20: £8.5m) – up 27%

·      Gross margin improved by 140 bps to 33.5%

·      EBITDA of £2.9m (H1 20: £1.2m) – up 142%

·      Pre-IFRS 16 EBITDA of £2.1m (H1 20: £0.8m) – up 163%

·      Profit Before Tax of £1.4m (H1 20: £0.4m) – up 250%

·      Net cash and cash equivalents at 31 July 2020 of £21.0m (31 July 2019: £13.3m)

·      Operating cash generation of £11.3m (H1 20: £1.8m) – up 528%

·      Successful placing in June 2020 completed with certain existing and new institutional investors, raising £5.5m (gross) to strengthen the balance sheet and provide funds to invest in the Group’s growth

 

Operational highlights:

·      Online:  Material growth in revenue and customer numbers:

–  UK revenues up 62% to £14.8m (H1 20 £9.2m)

–  Native language international country revenues up 51% to £1.6m (H1 20 £1.0m)

–  UK unique website visitors up 54% to 3.7m (H1 20 2.4m)

–  Native language unique website visitors up 150% to 1.0m (H1 20 0.4m)

·      Stores:  Resilient sales despite enforced government 12-week closure

–  Revenue up 2% to £14.2m (H1 20 £14.0m)

–  23% reduction in like for like store sales including the impact of closure during lockdown

–  All stores safely and successfully reopened, with like-for-like sales growth of 75% between 15 June 2020 to 31 July 2020

–  New stores opened in Warrington (February 20), Bristol (June) and Northampton (July)

 

Current trading and outlook:

·      Current trading both online and in-stores proving resilient

·      Closely monitoring government guidance and continuing to operate stores safely and effectively and will review further government restrictions and financial packages available as circumstances change

·      Leicester store opened in September 2020, with total count of 38 stores anticipated at the year end

·      Guidance reinstated for FY21 and on track to meet current year market expectations

 

 

Martyn Page, Executive Chairman, said:

 

“The Group’s first-half performance demonstrates considerable resilience, with strong growth achieved through our online business at a time when Covid-19 has posed significant challenges. The like-for-like sale growth of our store network since reopening has also been hugely encouraging. Importantly our focus on our core UK and European territories with a refined trading strategy, as well as further enhancements made to customer experience, has lifted margins and driven greater profitability.

 

Whilst the broader economic outlook and the risks associated with the ongoing pandemic remain uncertain over the coming months, based on the Group’s performance so far and its strong start to the second half of the financial year, the Board believes it is on track to meet market expectations for the current financial year. With a strong balance sheet we are also well positioned to withstand any further challenges that may arise.”

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